Context: 

3rd May was designated as World Solar Day, highlighting the revolutionary potential of solar energy, particularly in the field of agriculture. 

About the Agri-Photovoltaics (APVS) 

• The concept of Agri Photovoltaics (APVs) was introduced in 1981 by German scientists Adolf Goetzberger and Armin Zastrow to boost land-use efficiency and enhance farmer incomes.

Agrivoltaics is the simultaneous use of land for both solar PV energy production and agricultural purposes, such as:

• Crop cultivation
• Livestock grazing
• Pollinator habitats

Panels are elevated (~2m) to allow crops to grow beneath or between rows.

Significance of APVs

India: Challenges and Opportunities

• High Capital Costs: The majority of  Indian farmers are smallholders with less than 2 hectares of land, which makes the high capital costs of agrivoltaics a significant barrier. 
• Inadequate subsidies and feed-in tariffs: The current subsidies and feed-in tariffs (FiTs) are insufficient to encourage widespread adoption of agrivoltaics.
• Land Conversion Barrier: In some states, using agricultural land for solar projects requires formal conversion, which deters farmers.
• High Capital Expenditure: A typical 1-MW ground-mounted solar plant in 5 acres cost around Rs 2.7 crore, while an agrivoltaic system incurs an additional 11% cost due to the specialised infrastructure.
• PM-KUSUM FiT:  Under Rajasthan’s PM-KUSUM scheme, the current FiT of Rs. 3.04/Unit results in a 15-year payback period for a 1-MW ground-mounted solar plant.
• Impact of Higher FiT: A higher fit, such as ₹4.52/unit, reduces payback period to just 4 years. 

Country-wise Standards and Support for Agrivoltaics

• Japan: Agrivoltaic structures must be temporary and removable, with a minimum panel height of 2 meters, maximum 20% crop yield loss, and projects reviewed every 3 years for agricultural impact.
• Germany: Under the DIN SPEC 91434 framework, agrivoltaic systems must retain 66% of reference agricultural yield, limit arable land loss to 15%, and prioritize agriculture over energy generation.
• USA: Subsidies and tax concessions cover 30–40% of APV installation costs to incentivize adoption, as per the U.S. Department of Energy (2021).

Way Forward 

• Lack of Designated Policy: India currently lacks a dedicated policy on agrivoltaics, presenting an opportunity to integrate APVs into the Government of India’s The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme on agricultural solarisation.
• Leveraging Existing Infrastructure: Solar power plants under PM-KUSUM’s grid-connected components could incorporate models that allow simultaneous crop cultivation, helping to accelerate the adoption of agrivoltaics.
• Key Pillars for Success: Long-term success will depend on two key factors: strong economic incentives for investors and a robust, farmer-centric policy framework.

UPSC Mains Practice Question

Critically examine how Agri photovoltaics (APVs) can contribute to India’s energy security and smallholder farmers. What policy and financial measures are needed to scale up APVs?